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ADNOC Plans $45b Investment in UAE Downstream Sector

Pradhan was speaking at ADNOC's headquarters on the sidelines of an event marking the first cargo of crude oil from ADNOC, to the Indian Strategic Petroleum Reserves Ltd (ISPRL) after it has been loaded and was en-route to India.

Pradhan, who is on a three-day visit to the UAE which commenced on May 12, is visiting the Arab country to follow up on the February 2018 UAE visit of Prime Minister Narendra Modi.

This comes in the backdrop of a spike in oil prices with President Donald Trump pulling USA out of a 2015 historic accord with energy rich Iran that was inked to curb the Islamic Republic's nuclear programme in return for ending sanctions.

India, the world's fastest-growing oil market, is targeting support from both Saudi Aramco and Abu Dhabi National Oil Co. for the Asian nation's proposed $44 billion refinery, according to the Indian oil minister. The Conversion Park, occupying another 3.6 square kilometers, will also act as a catalyst for the creation of focused industry clusters, that cannot only supply products and solutions using the derivatives and other facilities available, but will also leverage the proximity of such an interconnected ecosystem to drive expertise, innovation and entrepreneurship. Vishakhapatnam storage has a capacity of 1.33 million tonnes (9.77 million barrels) of crude oil, Mangalore has a capacity of 1.5 million tonnes (11 million barrels) and Padur can stock 2.5 million tonnes (18.37 million barrels).

Like state-run Aramco, the world's biggest oil exporter, Adnoc is seeking to strengthen ties with refineries in Asia to lock up market share in the region driving growth in global oil demand. "So we request stakeholders to come and invest in India", said Pradhan.

The plans were unveiled at the ADNOC Downstream Investment Forum, which took place today in Abu Dhabi, UAE.

With India's energy demand expected to grow at 4.2% over the next 25 years, energy majors are scouting for opportunities here.

As part of its investment strategy, ADNOC will create the world's largest integrated refining and petrochemicals complex in Ruwais and undertake a highly targeted overseas investments to secure greater market access.

India is 82 per cent dependent on imports to meet its crude oil needs, eight percent of which is supplied by the UAE.

The government producer is mulling over a joint investment in the $44 billion Indian Ratnagiri refinery - India is now the world's fastest growing oil market.

"The strategic reserve will provide a boost to India's energy security and help us deal with supply side disruptions. While part of the stored oil will be used for commercial purposes by Adnoc, the major part will be purely for strategic purposes".